Does Homeowners Insurance Cover Broken Appliances?

Homeowners insurance provides financial protection for your home and belongings against unexpected events. Coverage for a broken appliance depends on the specific cause of damage and your policy terms. Homeowners insurance addresses damage from sudden and accidental incidents, known as perils, not general deterioration or mechanical failure. Understanding these distinctions is important for managing household finances and assessing potential risks.

Covered Causes of Appliance Damage

Homeowners insurance policies cover damage from specific, unforeseen events. If an appliance is damaged by a covered peril, such as a fire or a lightning strike, your policy would typically provide coverage for its repair or replacement. A kitchen fire that damages your stove or refrigerator would typically fall under your dwelling or personal property coverage. Lightning strikes can also cause power surges that fry appliance circuits, and damage from such an event is generally covered. Sudden and accidental discharge of water, like from a burst pipe, can damage appliances, and this type of incident is usually a covered peril. If a tree falls on your house and crushes an appliance, or if appliances are damaged due to theft or vandalism, these situations are also commonly covered by standard policies. Coverage applies when the appliance is damaged by an external, sudden event, not when it fails on its own.

Excluded Causes of Appliance Damage

Many reasons for appliance breakdown are not covered by standard homeowners insurance policies. These policies do not act as a warranty for appliance repairs or replacements. Normal wear and tear, the gradual deterioration of an appliance over time, is a common exclusion. If your washing machine stops working simply because it is old, the cost to fix or replace it will not be covered.

Mechanical or electrical breakdowns are also excluded from standard policies. This means if a refrigerator’s compressor fails or an oven’s heating element burns out due to an internal malfunction, your homeowners insurance will not cover the repair. Other common exclusions include damage from rust, corrosion, or mold, unless the mold resulted directly from a covered peril like a burst pipe. Damage caused by neglect or manufacturer defects are also not covered, as homeowners insurance is intended for unexpected losses, not maintenance issues or product flaws.

Understanding Your Policy’s Personal Property Coverage

When appliance damage is covered, it falls under the personal property section (Coverage C) of your homeowners insurance. This protects items not permanently attached to your home, such as refrigerators, washing machines, and blenders. Built-in appliances like furnaces, water heaters, and built-in ovens are covered under your dwelling coverage.

Your policy includes a deductible, the out-of-pocket amount paid before insurance covers a loss. For example, if you have a $1,000 deductible and a covered appliance claim is $2,500, the insurer pays $1,500. Policies also have coverage limits, the maximum amount paid for personal property, often 50% to 70% of your dwelling coverage.

Insurers value damaged property using either actual cash value (ACV) or replacement cost value (RCV). An ACV policy pays out the depreciated value of the damaged appliance, accounting for its age and wear and tear. For example, a five-year-old appliance might only be reimbursed at a fraction of its original cost. In contrast, RCV coverage pays to replace the damaged item with a new one of similar kind and quality, without deducting for depreciation. While RCV policies have higher premiums, they can provide a more comprehensive payout, allowing you to purchase a new equivalent appliance.

The Claim Process for Appliance Damage

If your appliance is damaged by a covered peril, initiating a claim involves several steps. First, ensure home safety and prevent further damage, like turning off water or power. Document the damage thoroughly with photos and videos. Gather relevant information, including the incident date, damage description, and cause.

After documenting, contact your insurance provider promptly to report the incident. Provide requested information and documentation, such as purchase receipts. An insurance adjuster will investigate; cooperate fully with their assessment. Maintain detailed records of all communications and related expenses.

Alternative Coverage for Appliance Breakdowns

Since standard homeowners insurance policies do not cover appliance breakdowns due to normal wear and tear or mechanical failure, other options exist to provide this type of protection. Home warranties are service contracts that cover the repair or replacement of major home systems and appliances, including those that fail due to age or everyday use. These warranties operate separately from homeowners insurance and involve an annual fee and a service call fee for each repair.

Extended warranties can be purchased at the point of sale for specific appliances. These provide coverage for defects or breakdowns that occur after the manufacturer’s warranty expires, offering an additional period of protection. Most new appliances come with a manufacturer’s warranty, which covers defects in materials or workmanship for a limited period, often one year from the purchase date. For broader protection against mechanical or electrical failures not covered by standard policies, homeowners can add an equipment breakdown coverage endorsement to their existing homeowners insurance. This add-on can cover issues like motor burnout or power surges for a range of household equipment.